Global markets have stabilized...

Posted: Thursday, August 9, 2018 - 08:50 EDT

Global markets have stabilized, after the Turkey-induced turmoil on Monday, with U.S. equity futures advancing this morning.  Euro area economic growth rose 0.4% in Q2, with a 0.1% upward revision to Q1 numbers and YoY GDP growth tracking at 2%. These numbers suggests that some of the worries from the trade war threats, may have been overdone.

 

Canadian corporate credit yesterday opened up a touch wider on the back of the negative tone from Turkey, however, it finished the day unchanged as the market’s perception of Canada’s impact will be minimal. Hydro One Q2 earnings came in stronger than market consensus, reflecting the favorable OEB decision on transmission rates and also favorable weather. In addition a new Board of Director was announced with the Province and largest shareholders nominated 4 and 6 members respectively.  The pending Avista acquisition still requires approval from Washington, Idaho and Oregon.  No timeline was provided during the call.

 

Equity Markets:

 

  Index Level % Change QTD YTD Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
S&P 500 2,821.93 -0.40% 4.03% 6.78% 6.07% 3.09% 4.48% 6.64% -0.76% 3.43%
TSX

16,250.75

-0.46%

0.03%

1.97%

2.41% -1.64% 3.68% 4.44% -4.52% 6.77%

Rates:

 

Today

% Change

QTD change

YTD change

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Canada 5 Year

2.23%

0.01% 0.16% 0.36% 1.12% 1.39% 1.75% 1.87% 1.97% 2.07%
Canada 10 Year 2.31% 0.01% 0.14% 0.26% 1.63% 1.76% 2.10% 2.05% 2.09% 2.17%
Canada 30 Year 2.33% 0.01% 0.13% 0.07% 2.30% 2.15% 2.47% 2.27% 2.23% 2.21%
30yr Generic Corporate A rated Spread 1.28% 0.00% 0.04% 0.04% 1.33% 1.21% 1.24% 1.21% 1.24% 1.24%
30yr All-in Corporate A rated Yield

3.61%

0.01% 0.17% 0.11% 3.63% 3.36% 3.71% 3.48% 3.47% 3.45%
US 10 Year 2.88% 0.00% 0.02% 0.48% 2.39% 2.31% 2.33% 2.41% 2.74% 2.86%
CDX IG 61.816 -0.291                

The information contained herein is intended for advisors for general information only and is compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy. All opinions contained in the commentary and expressed by the portfolio manager are subject to change without notice and are provided in good faith without legal responsibility. All market data is sourced from Bloomberg.